The artist has donated the entirety of his twenty-five thousand pound award cash to the trust for venues, which works to protect the United Kingdom's small live music spots.
The star was presented with the cheque on October 16 as his third album People Watching was named the best record of the previous year.
The musician has chosen to give the cash to the MVT, in acknowledgment of the vital role small stages played in his beginning days.
"I couldn't be pursuing my current career if it hadn't been for all the shows I performed around the area, and further afield, when I was starting out," said the artist. "These venues are renowned, but they are facing challenges."
Beginning in 2023, at least 150 of these locations have permanently closed – approximately 16 percent of the entire UK sector.
In the last year, major artists like the band Pulp, Coldplay, the singer Katy Perry and Sheeran have all backed the trust in its initiatives to support the industry, by applying a minor surcharge to their admission fees, which benefits independent venues.
Fender also took part, collecting over £100k on his live tour to help numerous grassroots venues across Britain.
The donation helped venues that were confronting potential shutdown due to challenges caused by flooding, blazes and bereavements, as well as permit problems, conflicts and noise complaints.
Additional spaces received monetary aid in upgrading amenities and sound and lighting systems that positively impacted artists and audiences.
"The idea that money from performances in big venues helps the independent spots, where it all starts for artists like me, is just logical," Sam Fender has commented.
He is far from the only musician to contribute his Mercury Prize prize money to worthy causes.
When the band received the award in 1996 for their album the album, lead singer the singer announced that the group would contribute their cash to the charity the charity.
In 2002, artist Ms Dynamite divided her prize between a few charities, like the children's charity and a charity for Sickle Cell.
"And I contributed a grand to my local community centre, to their classes, because I practiced gymnastics when I was a child and they needed new equipment," Ms Dynamite shared with a publication.
In recent years, they donated their winnings to the community center that supported their band, alongside other grassroots music organisations.
Additionally winners that year they gave their winnings to a multiple sclerosis charity after a acquaintance was identified with the condition.
"Receiving the award was ample," said artist the singer. "The cash was the extra but we could do without the extra, because we had the honor. So our success impacted another person's life."
Recently, the MVT shared it had saved two grassroots venues in the South East, by placing them under public stewardship.
The Joiners in that area and The Croft in that location were purchased under the community ownership scheme, which is supported by a national body and music fans who buy "shares" in the venues.